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The deed guarantees A a minimum profit of Rs 60000 by the firm. Actual share is Rs 52000. How will the deficiency be met?

Answer and explanation

Correct answer: Adjusted out of total firm profit

When guarantee is by the firm, deficiency is adjusted before final profit distribution. Here the deficiency is Rs 8000.

Related tags

Firm GuaranteeMinimum ProfitDeficiencyPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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